24 January 2004	Saturday	01 Zilhaj 1424

KARACHI, Jan 23: After opening higher, stocks on Friday reacted modestly from the early highs on weekend profit-selling but the underlying sentiment never showed signs that the current run-up is overdone.

The KSE index fell about seven points at 4,762.37.

The opening was, however, fairly promising, what the dealers called, the spillover of overnight buying offers and a good bit of bargain-hunting on selected counters, notably energy sector followed by reports that possibility is being explored to import diesel oil from India to save the massive freight costs from the Gulf destinations.

Both PSO and Shell Pakistan suffered fall ranging from Rs4.10 to Rs6 on hasty selling by some retailers, although the possibility of import from India may not be that easy. Leading bears, however, cashed in on the report.

The KSE 100-share index, therefore, touched the day's peak level of 4,792 before closing modestly lower by 6.94 points at 4,762.37 as compared to 4,769.31 a day earlier, reflecting the weakness of some leading base shares.

"It is now pretty clear that the index is sure to cross the barrier of 4,800 points level possibly by early next week," analysts said. "But the question being debated is what after the crucial level of 5,000."

The dividend-driven rally backed judiciously by the positive economic outlook could work wonders both with the index and the capital appreciation on selected counters, they said. "Those who have a deeper insight in the current trading pattern are bracing to ride the bandwagon."

Terribly easy supply of bank credit lines, higher corporate earnings, and falling rates of profits on the national schemes all point to a robust stock market in the sessions to come.

"People have the money but not many profitable investment options," says a broker. "Most of them now have found the way where to invest ensuring fair return on investment."

Both some of the blue chips as well as secondliners whose board meetings are due were actively traded on anticipatory short-covering in anticipation of capital gains.

Nestle MilkPak, which rose by Rs14 was leading among the gainers followed by New Jubilee Insurance, Burewala Textiles, Bannu Woollen, Century Papers, Sitara Chemical and Dawood Hercules, which posted gains ranging from Rs2.90 to Rs7.

Losers were led by Javed Omer, EFU Life, Pakistan Refinery, Packages, Engro Chemical, Honda Atlas and Dreamworld, which fell by Rs2.70 to Rs6.95. Clariant Pakistan also attracted post-dividend selling and fell by Rs3.75 at Rs134. It announced a final dividend at the rate of 70 per cent for the year ended Dec 31. Its management has already paid an interim dividend of 40 per cent.

Trading volume fell to 473m shares from the previous 484m shares a day earlier as losers forced a modest edge over the gainers at 186 to 164, with 44 shares holding on to the last levels.

Bulk of the alternate bouts of buying and selling remained confined to some secondliners, having potential to rise further, the traditional volume leaders including PTCL and Hub-Power were again modestly traded.

DG Khan again topped the list of most actives, up 75 paisa at Rs48.50 on 65m shares followed by Dewan Salman, higher by Rs1.60 at Rs23.30 on 51m shares, PIAC, firm by 85 paisa at Rs23.15 on 47m shares, FF Bin Qasim, lower 10 paisa at Rs20.10 on 38m shares and Sui Northern Gas, off Rs1.75 at Rs55.65 on 26m shares.

Other actives were led by PTCL, easy 15 paisa on 21m shares, National Bank, up 35 paisa on 20m shares, OGDC, off 45 paisa also on 20m shares, Sui Southern Gas, lower Rs1.35 on 17m shares and Pak PTA, up 90 paisa on 16m shares.

FORWARD COUNTER: Pakistan Capital Market Fund came in for active selling and fell 20 paisa at Rs11.75 on 6m shares followed by FF Bin Qasim, easy by 10 paisa at Rs20.15 on 4m shares and PTCL, off 24 paisa at Rs37.60 also on 4m shares.

PSO came in for active selling and fell by Rs3.30 at Rs287 on 2m shares, while Hub-Power suffered a decline of 80 paisa at Rs38.50 also on 2m shares.

DEFAULTER COS: Kashmir Edibles again came in for active support and rose by 10 paisa on 0.694m shares followed by Industrial Capital Modaraba, up 30 paisa on 0.287m shares.

Other actives were led by unity Modaraba, firm by five paisa at Rs1.70 on 0.158m shares and Nazir Cotton, higher by 25 paisa at Rs3.55 on 0.157m shares. Some others were also actively traded on the higher side.

BOARD MEETINGS: Kohinoor Sugar, on Jan 27, Kohinoor Textiles, Kohinoor Weaving, Shahzad Textiles, Prosperity Weaving, on Jay 28, Crescent Textiles, Alhamd Textiles, Clover Pakistan, Exide Pakistan, Automotive Battery, Baba Farid Sugar, Fecto Sugar, on Jan 29, Javed Omer, and Ferozsons Lab on Jan 30.

DIVIDEND: Clariant Pakistan, final cash, 70 per cent, interim of 40 per cent already paid.